No-load funds. (Ask B.E.).Q I'm very interested in no-load mutual funds No-load mutual fund An open-end investment company whose shares are sold without a sales charge. There can be other distribution charges, however, such as Article 12B-1 fees. A true no-load fund has neither a sales charge nor a distribution fee. and how they work. Can you assist me? --M. Mitchell Amarillo, Texas A No-load mutual funds are available for purchase without an upfront sales charge Sales Charge A commission or fee paid by an investor at the time of purchasing mutual fund shares. The charge is paid to a mutual fund salesperson or financial advisor and is intended to provide compensation for the financial salesperson's efforts in assisting their client select , but there is usually a charge when you liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the or cash in your shares. With these funds, you can invest the money you save on the up-front charges, which will hopefully accumulate enough wealth to offset other fund charges over the long run. You can find no-load funds A type of Mutual Fund that does not impose extra charges for administrative and selling expenses incurred in offering its shares for sale to the public. in just about any category--mid-cap funds, large-cap funds, value funds, and bond funds--so, no matter which area you have an interest in, you should be able to find one that suits your investment style. Choose a no-load fund just like you would any other mutual fund. However, make sure it has enjoyed strong performance over the last three to five years and that the type of fund you choose fits properly into a well-diversified portfolio Well-diversified portfolio A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been of investments. Last year, Morningstar (www.morningstar.com) rated The Vanguard Group, Schwab Funds, Dodge & Cox Funds, Harbor Capital Advisors Funds and Fidelity Investments Fidelity Investments is a group of privately held companies in the financial services industry. It is made up by two independent but closely cooperating companies, Fidelity Management and Research Corporation (FMR Co. as the least expensive of the top no-load mutual fund families (in terms of how much it actually costs, once fees are factored in, to invest in the fund). Vanguard and Schwab specialize in low-cost index funds. Dodge & Cox and Harbor Capital are known more for their emphasis on growth. Fidelity is so large it has something for just about everyone. You may also want to visit the Mutual Fund Education Alliance's Mutual Fund Investor's Center (www.mfea.com) for a list of the top 10 no-load mutual funds. --M.S.S. |
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